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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. PrtynNnt of Pfi trtClpal and fnteASt. Borrower shall promptly pay when due the principal of and interest on the
indebtednessevidencedbyfhe Note, prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage. .
2. Funds forTaxes and Insuance. Subject to applicable law or to a written waiver by lender, Borrower shah pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
a sum (f~rein "Funds" equal to one•Mrelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground tents on the Properly, it any, plus one-tweltth_ot yearly premium installments for hazard insurance,
plus one-twelhh olyearly premium installments for mortgage insurance, if any, all as reasaonablyestimated initialtyand from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall beheld in an institution thr9 deposits or accounts of which are insured or guaranteed by a F@deral or
state agency including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account.
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits- Lender to-make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is matte a applicable law
requires such interest to be paid, lender shall not be required to pay Borrower any interest or earnings or the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage. .
It the amount of the Funds held by Lender, together with the lure monthly installments of Funs payable prior to
the due dates of taxes, assessments, insurance pr fume and grou rents, shall exceed the amount required to pay said taxes, j
assessments, insurance premiums and ground ants as they due, such excess shall be, at Borrower's option, either '
promptly repaid to Borrower or credited to B rrower on onthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay t es, aSSe ants, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount neces ry t ke up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereo .
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by lender, Lender
shalt apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. AppllcaNon of Payments. Unless applicable law provides otherwise, all payments received by.Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Notel, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4.. Chars; Ltens. Borrower shall pay all taxes, assessments and othercharges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gound rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such marine), by Bprrower making payment, when pue, directly to the
payee thereof. Borrower shalt promptty furnish to lender all notices of amounts due under this paragraph, and in the. event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shaft agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hssard Insurance. Borrow~ershaN keep the improvements now existing a heieaftererected on the Property insured
against loss by fire, hazards.included vrithinthe term "extended coverage",and such other hazards as lender may require
and in such amounts and for such periods as Lender require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sum secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not tie unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
insurance carrier.
All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of toss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made-promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasrbte and the security of this Mortgage is
not thereby impaired. Ii such restoration or repair is not economically feasible ~r if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess. if any, paid
to.Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
dale notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
is authorized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the Property
or t~ the sums secured by this Mortgage. - - _ _ _ _ _ _ _ _ _ _ _ _
Unless Lender and Borrower otherwise agree in wilting: any such application of proceeds to principal shall,not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
rn and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior td such safe or
acquisition.
6. Preservation and fiAsint~nance of Property; Leaseholds; Condominlums; Planned Unit Developments.
Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Pro•
party and shall comply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent dc~uments. !f a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as i! the rider
were a part hereof
7. Protection of Lender's Security. If Borrowerlails to perform the covenants and agreements contained rn thrs '
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
~nclud~ng, but not limited to, eminent domain, insolvency, code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option. upon notice to Borrower. may make such appearances. disburse such
sums and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursements of
reasonable attorneys fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage,. Borrower. shall pay the premiums required to marntam such
insurance +n effect unfit such time as the requirement for such insurance terminates in accordance with Borrower's and
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